The next day, however, the Ministry of Health and Welfare halted the program, saying the metropolitan authorities did not follow its orders to stop the program and violated existing guidelines on creating policies.

Bringing the heated debate to the Supreme Court, the Seoul city government said the ministry violated a string of laws while abruptly prohibiting the program, going beyond its authority, and asked the court to nullify the decision. It also sought a suspension of the ministry's ban on the allowances until the court rules on the case.

The plan is designed to support people between the ages of 19 and 29, who have lived in the capital city for a year or more and work less than 30 hours a week. Enrolled students cannot apply for the program.

The city government said it has already provided the allowance to 2,831 applicants, who have signed agreements with the metropolitan government.

The central government has been opposing the plan, saying that the allowance plan does not solve the fundamental cause of the high unemployment rate and that it will only lead to more side effects, including moral hazards among young jobseekers.

The unemployment rate for people aged between 15 and 29 reached 10.3 percent last month, up from May's 9.7 percent, according to the report compiled by Statistics Korea. (Yonhap)